5 reasons to get the Bank of America Premium Rewards credit card

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Part of the fun of award travel is learning how to maximize your points and miles. You can get outsized value by booking through airline and hotel loyalty programs, but there’s something to be said for the simplicity of cash-back rewards. With that in mind, here are five reasons to add the Bank of America®️ Premium Rewards®️ credit card to your wallet.

1. Diversify your rewards

Transferable points are the royalty of the award travel world, but a well-rounded portfolio should also include points or miles that function like cash. The Premium Rewards card allows you to redeem points at a rate of 1 cent apiece as a statement credit toward any purchase. That gives you the flexibility to wipe away miscellaneous travel expenses like taxis, train tickets and parking fees that would otherwise be paid for out of pocket.

Of course, you can also use these points to cover conventional travel purchases like airfare and hotels. When prices are high, you’ll be better off booking awards through airline and hotel loyalty programs. But when prices are low, you may get better value from cash-back rewards. Having both options available will help you maximize your return for each redemption.

2. Redeem valuable travel credits

The Premium Rewards card has a $95 annual fee, but you can more than offset that cost with the card’s annual up to $100 Airline Incidental Statement Credit. While this credit can’t be used to purchase airfare, you can apply it to pay for a range of incidentals like baggage fees, in-flight entertainment and seat upgrades. The benefit is offered each calendar year, so you can likely get up to a total of $200 in credits during your first year as a cardmember.

The card also offers a credit of up to $100 every four years to cover the application fee for Global Entry or TSA PreCheck. (Photo by Shutterstock.com)

3. Score a large sign-up bonus

The Premium Rewards card is currently offering a sign-up bonus of 50,000 points after you spend $3,000 in the first 90 days of account opening. With a base earning rate of 1.5 points per dollar, you’ll have at least 54,500 points after you meet the spending requirement — that’s worth $545 in statement credits. And if some of your spending is on travel or dining, you’ll end up with a bit more, since you earn 2 points per dollar on those purchases.

However, you can boost your return by as much as 75% through Bank of America’s Preferred Rewards program. To participate, you’ll need an eligible Bank of America checking account and an average daily balance of at least $20,000 in qualifying deposit or investment accounts. The largest bonus is available to customers with a balance of $100,000 or more — at that level, you’ll earn 3.5 points per dollar on dining and travel, and an impressive 2.62 points per dollar on non-bonus spending.

If you already have high-value accounts with Bank of America, then getting this card is a no-brainer. If not, establishing a new banking relationship — like TPG himself did last year — may be a profitable move.

5. Spread out your applications

In terms of rewards credit cards, Bank of America has historically been overshadowed by Amex, Chase and Citi. Those three issuers have a track record of offering supersized sign-up bonuses and high-end benefits, but they also limit how many accounts you can have and how often you can open new ones. Focusing too much on any single card issuer makes it harder to take advantage of future opportunities, so the Premium Rewards card is a good option if you’re looking to diversify your portfolio.

Bottom line

The Bank of America®️ Premium Rewards®️ credit card doesn’t come with flashy travel perks like lounge access or elite status. Instead, it offers cash-back rewards that are flexible and easy to redeem, and the opportunity to earn a solid return on everyday spending. The sign-up bonus provides a lot of extra value up front, and the card effectively pays for itself through the annual airline credit. So if you’re looking to earn points outside of airline and hotel loyalty programs, this card is a good place to start.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

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Editorial Note: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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The credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. Please view our advertising policy page for more information.

Editorial Note: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.